It’s harsh but he does have a point when he says that it’s incredibly difficult to quantify a brand. A brand is not a financial value. To get anywhere near close to an accurate measurement you’d need an algorithm more complex than Google search.

Brand value is also more volatile than politics in a recession and can be just as irrational.

And yet Interbrand still ranks brand value yearly, with companies like Coca-cola, Nike, Apple and Disney coming out on top.

Is it just for ego?

In short…I’d say no. It’s an attempt by management to recognise that there are intangible assets that affect a company’s performance. Brand value is a significant factor in decision-making – the easiest way to make sure that it would be considered was to incorporate it into existing processes by giving it a numeric value.

Companies demand a minimum return on any investment made. The issue is how to justify the monetary investment needed to create a brand by showing that return.

I don’t have answers on how this can be done.

All I can say is that it’s not ideal, but with the current paradigm of decision-making brand valuation is the only way to ensure that it gets the investment that is required.